Reader question:
What does it mean to stack your coverage?
Jaime
Good question, Jaime.
Stacking your coverage can save you a lot of money on car insurance, but unfortunately it’s only legal in about 19 states. The other 31 prohibit the practice, so if you find yourself in one of those states you’re out of luck. The 19 states that are considered to ‘allow’ it either don’t address the issue at all through legislation nor litigation, or outright allow it and say so. Proceed with caution in the states that don’t state their position clearly.
You should check into stacking coverage if you end up filing a claim on insurance. If you stack your uninsured/underinsured motorist coverages, that means you can go and collect on more than one of your car insurance policies. This can save you a lot in the end, and you’ll get higher returns.
To find out if it’s permissible, check your insurance contract. If you do end up opting for stacked insurance, you’ll probably have to pay a higher premium. This could be from 10 to 30 percent more, depending on the where your state is as concerns litigation.
Cheers,
Fashun Guadarrama.